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Gold rises after weak US jobs data cools Fed hike hopes
Gold climbed to a seven-week high after the US economy unexpectedly lost 23,000 jobs in July, pushing Treasury yields lower.
Gold prices ended the week higher as a weaker US jobs report cooled expectations for a Federal Reserve rate hike, while a softer US dollar and declining Treasury yields supported the move, LiveMint Markets reports.
According to experts cited by LiveMint Markets, gold also benefited from the cooling outlook for crude oil, even as oil remained volatile around shifting headlines about a potential agreement to reopen shipping through the Strait of Hormuz.
LiveMint Markets said gold posted a weekly gain of more than 8% and reversed earlier pressure when geopolitical risk premiums eased after a planned US strike on Iran was postponed. Silver followed a similar pattern, moving to a six-week high by Friday as lower Treasury yields and a weaker dollar improved the appeal of non-yielding assets.
The week’s key catalyst was the US employment report on Friday, which showed the economy unexpectedly lost 23,000 jobs in July versus expectations for about a 80,000 increase, the first monthly payroll decline in five months. LiveMint Markets also noted prior data revisions lowered previous months by about 103,000 jobs and said an official pointed to progress in talks between Iran and Oman that could reopen the strategic Strait of Hormuz.
Latest closeGold $4,292.00 ▲1.1%|Silver $61.56 ▼0.9%|WTI crude $78.07 ▲3.8%